Sales Performance Analysis

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Cover Letter

08/09/2016

Ms. Diamantina White
C/o  Ballart Event Management Company (BEMC)
Sydney  - 2001

Dear Ms. White:

The report you requested on sales performance and strategies for the BEMC is attached.

Section 1 includes an overall statistics report of the business done in the first half of 2016. Section 2, 3 and 4 discusses the performance of the business in terms of best trade fairs, best customers and best performing sales representative. Section 5 provides valuable insights into the company and suggests recommendations for greater profitability.

I would like to thank you for the opportunity and for entrusting me with this report for you and the Executive committee. If you have any questions, please do not hesitate to call me on +61 254 735 8945 or email me at [email protected]






























Sales Performance Analysis 
& 
Recommended Strategies


















Executive Summary 

The report examines the business of BEMC, an event management company which deals in promoting and selling stand space at trade fairs as well tickets for visitors. The data includes the sources of income and expenses for BEMC during the first half of 2016. It is observed that BEMC earned a total income of 367,536 AUD while its expenses were 282,409 AUD giving a net profit of 85,127 AUD. The objective of the analysis is to cut down expenses and increase business turnover bringing more profitability to the company.

Analysis of the data tells that not all trade fairs are equally profitable. BEMC must try to engage more in trade fairs like books and government in which average profit is highest. At the same time, there are a few customers which have earned the highest gross profit for BEMC and cover more than 10% of the total profit. BEMC must try to have such repeat customers again and again. One of the income sources for BEMC is selling of tickets on which it earns 1.5 AUD for each ticket sold. However, there is no incentive for a sales representative to sell more tickets since his wages and commission depend only on the number of hours and the commission earned by BEMC on the space rent. It is suggested that sales representative’s wage be directly linked with the number of tickets sold as well.

In a few cases, BEMC has even made a loss in its deals. On analyzing, it is observed that the number of hours reported by sales representative is too high for such cases even though not many activities have been done. BEMC must ensure an accurate attendance monitoring system to track the number of hours spent by a sales representative. 























Table of Contents

Section 1: Overall Statistics	6
Section 2: Best Performing Trade Fair Category	7
Section 3: Performance of Sales Representatives	9
Section 4: Most Valuable Customers	11
Section 5: Recommendations	11
References	13














Section 1: Overall Statistics

The data consists of a sample of 200 trade fairs falling into 12 different categories. BEMC has 4 sales representatives – Alex, Chris, Jane and Luke looking after the sales of tickets and bringing in customers. There are a total of 141 customers among which some are new and some are repeating customers. BEMC has made a total profit of 85,126 AUD in the first half of 2016

Sources of income for BEMC are collecting fees from customers for the following activities:
•	Exhibitor stand organized
•	Exhibitor travel organized
•	Exhibitor accommodation organized
•	Exhibitor marketing material organized
•	Exhibitor hospitality organized

Apart from these, income sources are commission on rent and revenue from sale of tickets.

The expenses include fees paid for all the above activities plus the wages and commissions paid to the sales representatives.

Revenue from ticket sales = 1.5 x Number of tickets sold

Total Rent = Rent per sq. meter x Area (sq. m)

Commission received by BEMC on space rent = Commission % x Total Rent

Sales representative wages = 60 x No. of hours spent by the sales representative

Sales rep. commission = Commission % x (Commission received by BEMC on space rent)

Profit = Total Income – Total Expenses









Section 2: Best Performing Trade Fair Category

Below graph shows the total gross profits earned by a particular category of trade fair. It can be seen that food trade fairs top the list while manufacturing trade fairs are the bottom of the list in terms of profits.

 


The total number of trade fairs category wise can be seen below. It is evident that there has been a lot of food and wine trade fairs organized in the first half of the year.

 

The chart below shows the average profit earned by a particular category of trade fair. Although government and books trade fairs do not happen too often, it is important to not